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After quarterly figures, it is for Activision Blizzard investors to breathe first. Although the gaming group has published a weak forecast for the current fiscal year, this fact seems to be factored into the price of the stock after a 50% drop since the highest of the year. October.
The game developer, Activision Blizzard, has once again set a new sales record in the important Christmas district. Revenues were $ 2.38 billion higher than ever in the company's history and exceeded management's expectations. (Click here for the press release)
… but the prognosis remains low!
But records such as 2018, Activision Blizzard's executive floor is not planned for the current fiscal year. The turnover is expected to decrease by almost 20% in 2019 to reach six billion. It is simply missing the big games that come out of the money in the coffers. The group is facing the expected weakness with increased focus on its large and successful franchises. In the series of games "Call of Duty", "Candy Crush", "Diablo", "Overwatch" and "Warcraft" should be more invested. Activision Blizzard has separate less lucrative franchises such as "Destiny" – 800 employees are also fired.
The restructuring is well received in the first reaction
The restructuring of the gaming group has begun. Shareholders hope that the boundaries between Activision and Blizzard will continue to dwindle and that the goal of mobile gaming will be further reduced. The big franchises should arrive on the smartphone – a good opportunity to position themselves successfully in the critical growth market for the future from the start.
It is now time to wait and see how the market will adopt corporate governance restructuring plans and whether the fundraising will succeed. Investors stay with us for the moment.
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